Arabian Centres Company to invest up to $346mn into new mall in Saudi’s Eastern Province
The new mall is part of the developer’s expansion plans and will join the also under development Jawharat Al-Riyadh Mall and Jawharat Jeddah Mall
A 30-year lease agreement has been signed by lifestyle shopping developer Arabian Centres Company (ACC) for the development of the Jawharat Al-Khobar shopping mall.
To be developed on a 300,000sqm site north of Al-Khobar city the in Al-Kurnaish district at an investment of between $266mn to $346mn, the new mall will be the sixth in ACC’s portfolio in the Eastern Province and the 30th in the Kingdom.
Scheduled top open for business in early 2026, the developer says the average annual lease amount is set at around $13.7mn, which will enable it to develop the mall and other mixed-use commercial facilities.
In April 2021, ACC awarded a $68.5m contract to Lynx Contracting for the construction of Madina Walk.
The mall plans to offer between 130,000 to 150,000sqm of gross land area and in addition to retail, space will be allocated for mixed-use purposes (hotel and offices), which will be connected to the mall at a later stage, which will add up to 30% of additional returns in the future, said ACC in its filing to the Saudi Stock Exchange.
The developer said that building lifestyle flagship destinations is one of its key pillars for expansion, and that the Jawharat Al-Khobar Mall will be the third flagship lifestyle destination as part of its malls’ portfolio, alongside Jawharat Al-Riyadh Mall and Jawharat Jeddah Mall (both currently under development).
Once fully operational, it is estimated the mall will generate annual revenues of between $77.1mn and $87.7mn.
In September 2021, Arabian Centres Company announced the soft opening of the Jeddah Park Centre on the Prince Muhammad Bin Abdulaziz Road in Jeddah and, later in the month, opened the $68mn Nakheel Mall extension in Riyadh.
